Jersey and Guernsey Isles

Islands in the English Channel. The self-governing territories belonging to the British Crown, but are not part of the UK. Included in the European Union through membership of the United Kingdom of Great Britain and Northern Ireland.

Capital

St. Helier (Jersey)

Saint Peter Port (Guernsey)

Official language

English and French

Currency

British Pound Sterling (GBP)

Government

The islands are under the jurisdiction of the British Crown, but are not part of the UK. Responsibility of the United Kingdom is the protection of Jersey and Guernsey.

Legal system

Similar to the British

Corporate law

  • Companies Law 1991
  • Companies (Amendment No.8) Law 2006
  • Income Tax (Amendment No. 29) Law 2007
  • Limited Partnerships Law 1994
  • Trusts (Amendment No. 4) Law 2006
  • Foundations Law 2009

Types of companies

  • Exempt Company
  • Private Company Limited by Shares
  • Public Company Limited by Shares
  • Branch of Overseas Company
  • IBC (International Business Company)
  • General Partnership
  • Foreign Partnership
  • Limited Partnership
  • Trusts
  • Foundations

Exempt Company

  • Exempt company can be created in the form of a private company with limited liability and a public company with limited liability.
  • There are no requirements for exempt companies for payment of the authorized capital, except for specific activities such as banking or trust activity.
  • Shares of exempt companies can be of different types: conventional, preferential, giving equal and unequal voting rights and giving no such a right at all. Redeemable shares can be issued and their purchase is not considered as a reduction of share capital. Bearer shares and shares without par value are not allowed.
  • Only one director is required in a private company. In a public company there must be at least two directors. Directors may only be natural persons. Director may fulfill the functions of a secretary if he is not a sole director. Director and secretary of the company in Guernsey may be non-residents. In Jersey they must be residents of the island.
  • In a private company there should be at least two shareholders and, as a rule, no more than 20. The minimum number of shareholders in public companies should be 30.
  • Meeting of Shareholders / Directors may be performed outside the islands. Private Companies are exempt from the mandatory annual meetings of shareholders.
  • All companies must file the annual report. Private company is not obliged to disclose the profit and loss statement, and can indicate in the report only the list of shareholders who may be nominees. Public company must give details of the directors, provide a financial balance sheet and auditor's report. The annual fee for filing of the report and updating information in the registry is GBP 120.

Trust

  • The founder of a trust has the following powers: he can appoint and dismiss the managers of the trust, change or cancel terms of a trust and appoint or dismiss the investment manager or investment adviser.
  • New changes allow the manager of the trust to delegate his powers to another person if it is provided in the trust deed.
  • Trust governed by the laws of Jersey does not recognize any rights conferred on anyone under the law of a foreign state.
  • Trust established under the laws of Jersey does not recognize foreign laws on inheritance and foreign court decisions. Creating a trust is not subject to duty.
  • there are no requirements for the registration of a trust and the audit of a trust, although the tax authorities of the jurisdiction of the beneficiary may require annual reports.
  • Trust can "migrate" to other jurisdictions, changing the trustee and applicable law. Foreign trusts, similarly, can "migrate" to Jersey.
  • If beneficiaries of a trust are not resident in Jersey, income derived from sources outside Jersey is not taxed in Jersey, as well as dividends distributed to the beneficiaries and interest on bank deposits made by a trustee of non-resident trust.

Foundation

  • Since June 2009, establishment of foundations is allowed in Jersey. A foundation shall have a Charter and Regulations. Regulations prescribe the following provisions:
    • Establishment of council to manage the assets of the foundation and carry out its objectives;
    • Terms of appointment, dismissal and remuneration of its members;
    • Procedure for decision-making by council, and
    • Functions of the council.
  • Foundations in Jersey, like other foundations, recognize a notion of a guardian, who supervises the actions of the council and controlls the achievement of the foundation's objectives set out in the statutes.
  • Council of the foundation may consist of one or more members, and must include a qualified person.

Taxation of company

The Company is exempt from paying taxes on profits and dividends that are distributed to beneficiaries, if it does not operate in the islands of Jersey and Guernsey. These companies pay a fee of 500 - 600 pounds per year.

Agreements on avoidance of double taxation

There are no agreements.